April is an important month in Employment law and particularly for those dealing with payroll matters, so we thought we would share this quick reference guide with you.

Unless otherwise stated, the following changes in statutory rates for payments will apply from 6th April 2018, both during and after employment has ceased.

If you have questions on any of the below or require assistance with implementing or devising policies on Statutory entitlements, please feel free to reach out to Tassic.

National Minimum Wage Entitlements

1st April 2018 – 30th March 2019

Age 25+ (National Living Wage): £7.83 ph

Age 21+ (Standard adult rate): £7.38 ph

Age 18-20 (Development rate): £5.90 ph

Age 16-17 (Young Workers rate): £4.20 ph

Apprentice Rate: £3.70 ph

Accommodation offset limit (max daily deduction from NMW): £7.00 ph

Statutory Sick Pay (SSP) Entitlement

The SSP scheme entitles qualifying employees who have been absent from work for four or more consecutive days to receive a minimum weekly payment. Employees are entitled to up to 28 weeks’ SSP in any period of incapacity for work.

The rate of SSP effective from 6th April 2018 will be £92.05 per week.

Statutory Maternity Pay (SMP)

From 6th April 2018:

  • First 6 weeks – 90% of normal earnings before tax
  • Following 33 weeks – £145.18 or 90% of employees average earnings (whichever is lower)

Statutory Paternity (SPP)

Please note, SPP also applies to secondary adopters. From 6th April 2018, the entitlement will be:

  • 2 weeks – £145.18 per week, or 90% of normal earnings (whichever is lower).

Statutory Adoption Pay

From 6th April 2018:

  • First 6 weeks – 90% of normal earnings before tax
  • Following 33 weeks – £145.18 per week or 90% of normal earnings (whichever is lower)

Maternity Allowance

The Maternity Allowance is for women who are not entitled to SMP. The entitlement from 6th April 2018 will be:

  • Up to 39 weeks – £145.18 per week or 90% of normal earnings (whichever is lower)

Shared Parental Pay 

From 6th April 2018:

  • Up to 39 weeks, less any weeks spent by the child’s mother or adopter in receipt of SMP, MA or SAP – £145.18

Please note: ‘normal earnings’ are calculated based on the employee’s earnings during the eight-week period prior to the qualifying week (the qualifying week is the 15th week before the expected week of childbirth).

Compensation

The below increases to compensation will apply if the effective termination date of employment falls on the 6th April or after.

  • Compensatory awards – Increase from £80,541 to £83,682 (or a year’s pay, whichever is lower).
  • Minimum basic award for certain unfair dismissals relating to health and safety, employee representative, trade union and occupational pension trustee reasons – Increase from £5,970 to £6,203.
  • Statutory redundancy and basic award – The maximum statutory cap on a week’s pay increases from £489 to £508
  • Bands of awards for injury to feelings ‘Vento bands’ – Lower band – from £900 to £8,600. Middle Band – from £8,600 to £25,700. Upper band – from £25,700 to £42,900
  • Interest on discrimination awards – 8% from 6th April 2018
  • Compensation for breach of contract (e.g. awards for wrongful dismissal at an Employment Tribunal) – £25,000 from 6th April 2018
  • Compensation limits on guarantee payments – Increase from £27 to £28
  • All payments in lieu of notice – Taxable at the normal tax rates

Other Statutory Obligations

Gender Pay Gap Reporting – Employers with 250 employees or more will have to publish their Gender Pay Gap Statistics from the below dates:

  • Public Sector – 30th March 2018
  • Private Sector – 4th April 2018

General Data Protection Regulation Employers will need to carry out employee data audits and prepare compliant policies and privacy notices for the 25th May 2018

Source: UK Government Website and CIPD